Seasonal less production and increasing pellet export have led to shortage of sponge iron in Indian domestic market, especially in east region. As a result, offers have increased further by INR 200-600/MT W-o-W and INR 400-800/MT since starting of current month in Rourkela and Durgapur (east region).
Rourkela and Durgapur based manufacturers, who sell sponge to west and north-east regions reported that enquiries are increasing day-by-day as sellers are less in the market due to shortage of material. Moreover, buyers are also agree to pay premium for ready delivery material.
Today, Durgapur based Rashmi Metaliks has raised its offers for P-DRI to INR 11,800-11,900/MT and C-DRI to INR 12,600-12,700/MT. An official quoted, “There is no need to push sales; material is being sold at current offers”.
Shyam Metaliks in Odisha (Jharsuguda) mentioned that offers have increased by INR 100/MT to INR 10,600/MT for P-DRI. The plant is not offering C-DRI in the market as it has kept the material only for captive use. The plant is offering billet at INR 19,200/MT ex-plant.
On the other hand, offers in Raipur and Bellary are more or less at similar levels as the manufacturers are not receiving buying from west and north based manufacturers due to competitive offers provided by east India based sponge makers.
Sponge offers in Raipur and Bellary are higher by INR 600-800/MT than the prices offered by Rourkela and Durgapur based manufacturers. While, freight charges are varying only by INR 200-400/MT from east (Rourkela & Durgapur) to north and west India against freight from Raipur and Bellary to north and west India.
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